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Building a Social Progress-Adjusted Indicator of GDP Per Capita for the European Union’s Regions

Author

Listed:
  • Andrés J. Picazo-Tadeo

    (University of Valencia)

  • Lisa Gianmoena

    (University of Pisa)

  • Jesús Peiró-Palomino

    (University of Valencia)

  • Vicente Rios

    (University of Pisa)

Abstract

Boosting economic, social and territorial cohesion is a high priority for the European Union. The regional Cohesion Policy is its instrument for achieving this objective, with GDP per capita being the principal criterion for funding allocation. However, social cohesion also embraces a comprehensive range of non-economic features. This paper proposes a composite indicator of GDP per capita adjusted for social progress that incorporates both economic and non-economic issues. Notably, the indicator can account for policymakers’ preferences regarding the relative importance assigned to income and social progress. This novel indicator is used to simulate the eligibility status of European Union regions for funding in several policy scenarios. Regions’ simulated eligibility is then compared with their current eligibility for the period 2021–2027. Based on that comparison, winner and loser regions are identified, thus providing policymakers in charge of the European Cohesion Policy with an insight into the effect of incorporating social progress into funding allocation.

Suggested Citation

  • Andrés J. Picazo-Tadeo & Lisa Gianmoena & Jesús Peiró-Palomino & Vicente Rios, 2024. "Building a Social Progress-Adjusted Indicator of GDP Per Capita for the European Union’s Regions," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 175(2), pages 317-345, November.
    • Handle: RePEc:spr:soinre:v:175:y:2024:i:2:d:10.1007_s11205-023-03267-7
    DOI: 10.1007/s11205-023-03267-7
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    References listed on IDEAS

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    More about this item

    Keywords

    European Union; Regional Cohesion policy; Eligibility; Social progress;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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